your dog to use it. that is it for "the willis report." have a great night. we will see you back tomorrow. lou: good evening, everybody. thank you for being with us. nowhere is president obama's foreign-policy are obviously confused than contradictory of egypt. what could be more confounding than the administration's apparent support for not only the secular military, but its embrace at the same time of a muslim brotherhood with israel and western civilization itself. president obama today addressing the violence and deadly clashes between the egyptian military

and supporters of ousted president mohammed morsi. a battle that has claimed the lives of more than 600 people over the past few days and injured more than 4000. president obama scolded the egyptian military today, saying that traditional cooperation with egypt cannot continue as civilians continue to be slaughtered before claiming to be neutral in the conflict. >> we do not take sides with any particular party. or political figure. i know it is tempting inside of egypt. to blame the united states or the west or some other outside actions for what has gone wrong. we have been blamed by supporters of mohammed morsi and we have been blamed by the other side as if we are supporters of mohammed morsi. lou: of course no one could better clear that up than the president himself. the mixed signals from the white

house revealed the confusion within the administration. president obama calling for a return to a democratically elected government and his support for the muslim brotherhood it preserves a $1.5 billion in annual aid that is now in the military and in the president canceled a joint military exercises that had been scheduled for next month. but the president said nothing about suspending military or economic aid. and while he hustled off to the golf course just moments after his remarks, he had a second street triple digit decline in the dow jones. and former secretary of state hillary clinton making another move that suggests her campaign for president is moving into high gear. the best-selling author of the

amateur. ed klein is here with us. mark leibovitz exposes the money and the media in our nation's capital and he joins us here tonight as well. we begin with egypt and the violence that has been unleashed on the streets of cairo. hundreds killed, president obama forced to interrupt his vacation, weighing in on the deadly events. offering little in the way of an explanation for the failure of his administration's policy. he hardly acknowledged failure itself. and he distanced himself today from mohammed morsi as he expressed support for diplomatic solution and condemned those moves to violence. senior white house correspondent wendell goler has our report.

>> president obama was in front of tv cameras. he focused most of the condemnation on the military and announced the u.s. will boycott joint exercises that have been set for next month. >> our cooperation cannot continue as usual when civilians are being killed in the streets. when rights are being rolled back. reporter: it was once a mainstay of the regional relationship. but they haven't been held since 2009 because of egypt's continuing political instability. here on martha's vineyard, mr. obama has spent time on the phone with his national security team and personally briefed by his national security adviser, but he hasn't found a solution to egypt's problems. >> america cannot determine the future of egypt. that is a task for the egyptian people. reporter: both the military and the muslim brotherhood have accused him of supporting the

other side. >> has been done on a scale. he says it will resonate over egypt and it will not do him any good. reporter: meanwhile, rand paul criticized him for not ending the $1.3 billion in military aid, saying that the law is very clear when a coup d'état takes place, foreign aid must stop regardless of the circumstances. mohammed morsi was democratically elected, but many say he didn't do his job. >> he started suppressing opposition, and that is what mohammed morsi was doing. reporter: thousands were driven out of the country one of mohammed morsi had power. >> it not be any such place for violence in egypt.

reporter: kt mcfarland said canceling the exercise could backfire. >> i would say that criticizing him publicly or privately have that military exercise and have a pollster what is going on in egypt today and see if we cannot influence events. reporter: they say that the military leaders are running out of time before the economy collapses and they lose their public support. lou: we have new details tonight on the obama justice department's deadly gunrunning operation, fast and furious. three more weapons associated with them have been recovered and crime scenes in mexico. three rifles were traced to a gun shop in glendale, arizona, justice department documents reveal that. some 211 people have been killed or wounded by weapons from the

bungled "fast and furious" operation run by the justice department. of the estimated 2000 weapons, something like 1400 of them remain on the streets or unaccounted for. the bureau of alcohol, tobacco and firearms has released this statement. an estimated thousand people have been killed and 26 people are missing. nearly 100 thousand people since 2006.

a rough day on wall street. the dow jones industrial posting triple digit decline since the month of june. the dow jones plummeted 225 points, the s&p lost 24. the nasdaq down 63 points. volume on the big board, 3.3 billion shares. the wilshire 5000 measuring at $300 billion in market cap. but it wasn't all bad news. jobless claims fell to the lowest level since october 2007. about 48 cents a barrel rising for crude oil today. and in the bond market today,

the highest yield in the 10 year bonds since two years ago. the republican national committee spent day two of its summer meeting focusing on strategies for success in the 2014 midterms. and eventually, of course, the 2016 presidential race. this comes one day before an rnc committee is set to vote and whether to forgo partnerships with nbc and cnn on the 2016 presidential debate. the two media companies plan to air documentaries on hillary clinton, a likely democratic presidential candidate. correspondent karl cameron has our report. >> the republican national committee is in boston planning strategy for the next presidential race. they are offering recommendations as well.

>> we have already hired 157 full-time people across the country in just a few months. we are adding more every single mums from coast-to-coast. so we are doing obviously african-american communities and asian communities and we have a lot of work to do. reporter: >> let us lead you to stay where you are. what we have to offer is hope. reporter: to catch up to democrats, they have developed new online gadgets software and hardware. >> we are not trying to do what happened in 2012, it might be a different thing. reporter: chris christie address this behind closed doors and otherwise try to avoid the

media. he took a couple of veiled shots in bobby jindal, the governor of louisiana and they say that this shouldn't be a debate in society, most republicans think that the gop should be more libertarian in their views. he also said that he didn't come here to say it is the stupid party. a reference to some that happened last year during the 2012 election. by the way, just about everybody here said that they will write it off. lou: i have to say it is striking. such a straight up an old firm position like that. it has not been the nature of

the decision-making elites over in my words in the last seven years. >> well, he thought that it waa time for the republican party to stop the esoteric worry about the nsa surveillance and he was asking if he had made a specific reference to rand paul and others. he had kind of a libertarian approach to it. the united states need to defend herself, and now lou: are we to take the silence is affirmation that they have moved beyond stupidity?

>> not in the slightest. there are some conservative two parties that are pushing hard for strong reforms to the gop. it is time for them to moderate some reviews and that doesn't seem to be the tone here. they say that the principle should stay the same. lou: thank you very much. much more on the race to 2016 and we will be talking. ed klein joins us with the latest on hillary clinton coming up next, jedediah bila on the

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lou: president obama's confounding policy for egypt, the entire region, clearly not working. libya and syria, of course, joining us for a look at the middle east and other issues of the day. fox news digital politics editor chris stirewalt is here with us. thank you both for being here. it seems utterly informal and

unpresidential. i just found not bizarre. >> the fact that he did it for vacation, he has a very serious issue here, i don't begrudge him a vacation, with no explanation as to why you have the president making contradictory statements about what our involvement really is. at the same time funneling and $1.5 billion. the american people are confused, i would like to see the american president act like a president. but that's just me. lou: i am not confused in the least.

what are your thoughts? >> we may say that we publicly don't take sides, but we do take sides when it comes to this. their administration says the famous construction that they have determined that they are not going to make a determination. how the government came into being. while we are being confused or sending these mixed signals, our allies in the gulf for stepping in. and the others are funneling money into this because for them it is a life or death consideration, a nation of some 90 million people who are mostly poor if the muslim brotherhood's hold holding sway there.

it is crumbling in a very serious condition. lou: as k.t. mcfarland pointed out to me, egypt remains $20 billion to move ahead. this is a country racked by all sorts of challenges. they are impoverished and the youth is right now on the brink of a ccvil revolt. but the truth of the matter is that the secular military is acting in our interest and nearly every interest. have we changed the direction?

we have been calling for peace and calm. i don't see any respect or acknowledgment of what the united states has been asking for. so what makes those things? continuing to get this money like it's going to change anything in the name of influence. lou: you have just used the term wiki. i would call president bush being in office and television personalities were not in his people were not using the construction.

>> it calls for transitional theocracy. transitional islamist government because of the president has argued, because in these countries that were led by strong men, but there wasn't a legitimate political opposition. that has not turned out so great in libya, as you said, has continued to be a part of this. people are anxious. lou: could this president have forgotten that the enemy here is radical? >> i would also remind you that it is all money. i'm talking about our money and tax dollars that are being used. lou: if we are going to tax dollars we have a lot of things that the cabal. one of them is the failure to

come to a successful conclusion in the process of the benghazi scandal. in which we have seen pallor by this administration and a refusal to prosecute those responsible. is there any reason to hope for a resolve the on what we are experiencing? >> i think if you look at ben cozzi as a template for that, several months ago, for five months ago, they were dismissive of benghazi questions, oh, that's a fox news thing, we're not listening to that, oh, who cares. but over time the facts have dribbled out. it was all of a sudden at the top of the list that were not phony scandals for the president. i believe that it's three months

now more and more comes out. >> this president has a problem with accountability and taking responsibility for things that happen on his watch. he is not running for anything is anymore. he doesn't have to answer a lot of questions that he felt he had to answer before. we will see if some future potential candidates have to answer for some of us. lou: thank you both very much. up next, the liberal national media trying hard to make comparisons in the chalk talk. doing exactly that tonight. you're going to love what they have in common and perhaps not so much enjoy what they don't. we have been asked.

lou: as you have seen and heard, the president condemning egypt for another round. his fourth round of you are keeping track.

"the new york times" comparing the president's approach and other issues to the hidden hand style of president eisenhower. but beyond the president's love of golf, eisenhower played a significant amount of golf and we thought that we should point that out to you. 137 rounds, as i said, for president obama. 800 rounds. working out of more than a hundred rounds a year for president eisenhower. he got a lot done as well. but he couldn't be further apart from the 34th president in many respects before becoming president, president eisenhower

led our troops in world war ii. but then obama went on to play spades after killing osama bin laden and giving orders for that with his former bonnyman, they call it, eisenhower is a president with big ideas, including the space program and the manned expedition and he has gotten rid of that. eliminating the shuttle program and another of the presidents big ideas. they big idea is obamacare. it was hillary clinton's idea. by the way, it was nancy pelosi.

so the president chose to complain and we should note that every president has had to deal with the least one congress controlled by the opposite party, two--erm president, president obama has two things in common with president eisenhower. it means that you get to play as much as you want. as much golf as you want. by my reckoning you have about 660 more rounds to play and you better get busy. but maybe you could use some of that time on the course to come up with that big idea for the country. it would be helpful. remember when he was the darling of the national liberal media?

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he won the republican national committee made it clear that hillary clinton is in their crosshairs. the rnc just released video asking whether cnn and nbc will continue coverage of a clinton scandal and film production about the former first lady. it alludes to hillary clinton's brother. the fourth in a series of videos attacking clinton, perhaps. joining us now is ed klein. would he make of this new hit job, presumably above "the new york times" on the clinton foundation?

>> what they alluded to was some ethical questionable behavior on the part of the people running the foundation. the crosscurrents of donors who are also part of the foundation and also involved in businesses. the whole thing reminds me of clinton's presidency. big ideas, we are going to save the world, chaos, mayhem, ethically questionable. lou: clinton associates staffers and contributors and all the while why is "the new york times" doing this.

also to inoculate hillary clinton as she gets ready for 2016. what do you think? >> one of the things that i find pleasant is why hillary would make her campaign headquarters at the clinton foundation hearing here in manhattan instead of separating yourself from this very questionable operation of bill clinton has been running all of this time. it seems to me that she is sending her adversaries as we look at the latest report here. maybe she doesn't have to worry about that according to the latest rasmussen poll. 39% say that they would vote for clinton in only 39% for joe biden. that is a pretty profound showing for something three years in the making.

>> she had breakfast with joe biden the other day and the subject came up in 2016. although she didn't say i hope he won't run, she made it clear according to my report of people who went to the breakfast, that he avoided telling her that he would not run, he left her a definite impression that he was thinking seriously about it. lou: he also had lunch with the president the republicans are getting ready for 2014. they haven't declared it yet. they are talking about making it happen. they have a lot to explain the

law to energize their base, which is precisely what it has been for the past two presidential elections, 30s and trend. >> they certainly do. the clintons, in the meantime, actually piling up in potential donors and it's going to be a very formal candidate, which is why in the world they have done is. >> thank you, we appreciate it. >> there is a lot of energizing to do. up next, the second consecutive triple digit loss for the dow jones. lou: looking at what is going

on. we will have that next. what the public is thinking [ phil ] when you have joint pain and stiffness...

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lou: gold posting gains for a second straight day. hedge fund manager john paulson is having his stake in the hedge trading fund. selliig his entire position in gold has plunged nearly 19% this year. but today, the market is going up, and the dead. not only boosting his stock in apple, carl ichan is boosting his flickr followers as well.

my next guest says today's economic news gives the fed the little reason to begin tapering next month. gregory miller, it is great to have it you here. i can't believe the number of people in members and those just blabbering about this next month as if they haven't read the minutes of their own meeting. >> i believe. >> he has given his presence and his other governors free reign to speak openly in public. that is a big difference over the past few years.

lou: with almost any organization, it is an effective. >> it was to add transparency to the process. and i suspect that he wanted to permit the public to understand just how those meetings can get. lou: what we have listened to from these various individuals at the federal reserve and this transparency, it is clearly a group of people that had not been listening to ben bernanke, nor have they understood what the word inflation means. because of this chairman has made it clear that this

inflation was a higher priority than anything else right now. >> i think they are suggesting this farther down the road. it is not near term. it is a significantly longer way. lou: for five years we have heard it. >> sure we have. the potential is always there. it is a matter of kinetic and not potential that we have to concern ourselves with, particularly when we are looking at a time like this. we did get a couple of numbers that the industrial production number was not politically

favorable. there were a lot of holes in it. particularly the capital spending. i don't understand the negativity that surrounds the corporate earnings improvement of 4%. but by golly, it is positive. and i am watching a market that is rolling off. >> i agree that the stock market

has been doing remarkably well. lou: cisco is reflecting that as well. >> it is that as well. and as ev knows. lou: gregory miller, come back soon. we appreciate you being here. up next, the new book this town.

exposing a reality that is precisely what you have probably thought. mark leibovitz joins us next with his runaway bestseller.

lou: the new book, this town. two parties and a funeral, suggesting that they are not just democrats and republicans in washington, talking about the

wealthy folks that have incestuous relationships with one another. the chief national correspondent mark leibovitz. thank you so much on the book. congratulations. it has been out for weeks. >> people seem to be liking it. maybe i'll get run out of town. [laughter] lou: i recommend you read it because it really reveals what we feared were down there. >> and has it has become in the words of tom coburn, a perman feudal culture of hangers on and self-perpetuating careers. politicians, media, the usual stuff. these are the people who run the country and this includes part of the process and the government itself. the chief white house

correspondent commonly featured this. >> he said as much and i'm going to believe him. >> she has made washington work for her. there have been people like her, getting media companies to pay her a lot. >> she is a woman of a man's intelligence and energy and just a passion for all of the politics and media and power.

and the money doesn't hurt. >> that's right, i have a bias towards transparency, but this is not just a fun book. people in america have been outraged about this and i wanted them to be entertained and laugh about it. i want them to be out there because i think that the farther out with washington we get, the greater that we need to understand it. lou: how can such a contemptible group of people be at the same time so compatible with one another and do so little for the rest of us? >> because the system rewards it and this is the system in which washington can work very well. we have a city that was allegedly built on public service.

lou: there has been no recession like this. and this administration, almost every day i asked why don't we know the daily routine to the degree of this routine. why don't we understand and have an articulation by this president of an explanation of the policies, even context. >> this administration was supposed to be different. this was the hope and change campaign. and i think one of the narrative arts is in the five-year period. but washington has changed him and his people. maybe they were to appoint like this.

this is the ultimate pox on houses. >> but be honest, this is their part of the political class. the flooding of money into washington. is there anything that can be done to change what is a cesspool by definition? >> i hope so. i'm a journalist and i hope that it creates an outrage or something. i don't have a chapter at the end where i have my bullet points on how to make this better. >> i don't know if it exists anymore, but i think that this is a wonderful book.

lou: the book is called this town. goodnight and have a great evening. right now, 7 years of music is being streamed. a quarter million tweeters are tweeting. and 900 million dollars are changing hands online. that's why hp built a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot.

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♪ neil: getting fired. if you want to know what is rattling wall street, as strange as it might sound come made is things looking better on main street. welcome, everybody. [laughter] if you think hell hath no fury like union guys having their benefits taken away, you should see what happens with the stock guys getting their goodies taken away. they may say they are lazy fair, but did they scream not fair when it is their benefits going to bite which is what happens today. very hard to prove, but lots of talk beginning overnight with chatter about the federal reserve already tapering or at le